Risk Management University of Houston

1. Risk ManagementUniversity of Houston March 2011

2. Business Overview & 2011 Results Risk Management Q&A

3. Halliburton Overview • Provides a broad suite of products and services to help explore for and produce oil and gas • 2010 sales of $18 billion • Equity market capitalization of over $37 billion, as of December 31, 2010 • 2010 return on capital employed of 14%(1) • Three business segments • Drilling & Evaluation • Completion & Production • Consulting & Project Management (1) Return on capital employed defined as: (net income attributable to company) / (total shareholders’ equity + total debt)

4. Why Halliburton? Halliburton Locations Halliburton Headquarters Halliburton Research Centers 2010FASTFACTS OperationalCountries ResearchCenters Corporate Headquarters Founded: Employees Customers 1919 50,000+ 70+ 14 Houston Dubai National, International and Independent entities worldwide

5. Drilling and Evaluation Drilling and Evaluation Consulting and Project Management Completion and Production Landmark Sperry Drilling Testing and Subsea Drill Bits and Services Baroid Wireline and Perforating Product Service Line (PSL)

6. Completion and Production Drilling and Evaluation Consulting and Project Management Completion and Production Cementing CompletionTools ProductionEnhancement Boots & CootsWell Intervention Product Service Line (PSL)

7. Consulting and Project Management Drilling and Evaluation Consulting and Project Management Completion and Production Consulting Project Management Product Service Line (PSL)

8. Halliburton Divisions – 2010 Revenue Year Ended December 31, 2008 (in millions) Drilling and Evaluation Completion and Production Sperry Production Enhancement ($ billions) Wireline Cementing Baroid Completion Tools Security DBS Drill Bits Software & Asset Solutions Testing & Subsea

9. Global Operations – 2010 Revenue International North America

10. North America vs International Spectrum of extremes North America Efficient (immediate response to commodity price changes) Transactional Extreme volatility International Longer terms Less transactional Dampens extremes 10

11. 2010 Acquisitions – Risk Management Due Diligence Boots & Coots, Inc. – Well intervention services and pressure control products Location: International Employees: 700 Professional Wireline Rentals LLC – Various wellhead and subsurface rental equip Location: U.S. Employees: 300 Wellbore Energy Solutions, Inc. – Wellbore cleaning services Location: U.S. Employees: 30 Diamond Rotating Heads Inc. – Low pressure rotating control heads for drilling Location: U.S. Employees: 14 Evans Engineering, Inc. – Downhole rental jars Location: U.S. Employees: 17 Permedia Research Group – Modeling software and services Location: Canada Employees: 20

12. Business Overview & Results Risk Management Q&A

13. Enterprise Risk Management • Methods, framework, and processes utilized to manage risks by taking an integrated and holistic view of the various uncertainties involved across the organization. It is the process whereby an organization optimizes the manner in which it controls risks. • Required by SEC and NYSE • Evaluated and rated by rating agencies based on effectiveness of program. • ERM sponsored at highest levels of Halliburton • Direct and independent reporting to Audit Committee of BOD • Sustainable monitoring plans for risks and controls • Cultural permeation Develop & Refine Risk Assessment Processes Initial Risk Assessments Completed Senior Leadership Established Formal Strategy For Sustainability Assessments Updated & Validated Monitoring Processes Established Global Awareness 2005 2006 2007 2008 2009 2010

14. ERM Leadership Board of Directors Halliburton Senior Management RM Committee Chairman: Sr VP & Treasurer Director Risk Management VP Internal Audit & Controls Chief Ethics & Compliance Officer Corporate Advisory Committee VP & Controller EVP Administration VP and Deputy General Counsel CIO VP Supply Chain VP Tax Operations Advisory Committee President Global Business Lines President Western Hemisphere President Eastern Hemisphere Sr Director Intellectual Asset Management Sr Director Operations Finance Subject Matter Experts (“SME”) Determined as needed Working Team Risk Management, Internal Controls, Treasury, Audit, Law

15. Risk Management Organization • Functional reporting to Treasury and CFO • Insurance Programs • Insurance and self-insurance procurement • Fronting programs and captives • Brokerage relationships • Global Claims • Occupational injury administration • Insurance recovery (all lines) • Claim services vendor relationships • Risk Management Information Systems • Data Management • Financial and executive reporting • Risk Management Accounting • Budget control • Cost allocation • Reserve management

16. Risk Management Responsibilities • Identify exposures to risk of loss • Determine desired means of managing exposures to risk of loss • Support SEC risk compliance • Obtain insurance required by and in accordance with applicable laws • Negotiate customer insurance terms and assure compliance • Support pursuit of new business opportunities • Support due diligence for acquisitions and mergers • Provide surety services • Maximize insurance assets through efficient claim recovery

17. Insurance Purchasing Philosophy • Utilize insurance risk transfer only in the following circumstances: • Required by law or contract and fronting is not possible/practicable • Catastrophic exposures, i.e. materially adverse impact to company • Premium is lower than expected losses

18. Insurance Program Excess Liability Summary of Insurance GL / AL / EL ACE (Bermuda) Onshore Property Swiss Re Liberty / Zurich Lloyds AIG / Zurich / ACE Arch / XL / Allied D&O Liability Lloyds Liberty Mutual Side A DIC Munich Re / Arch Lloyds ACE Arch AIG Hartford AWAC RLI HCC Endurance ACE Lexington XL Fiduciary Liability Work Comp Air Craft Vessels Well Control Offshore Property Cargo Arch AWAC AWAC AIG XL (Bermuda) RSUI CNA Statutory Limits Ace USAIG Lloyds Lloyds Lloyds Ace Max Re Crime Axis AWAC AISLIC ELU HCC AIG AIG AIG Lloyds Hartford HCC Deductible Type of Coverage

19. Case study - Cargo Risk • Thousands of shipments annually to over 100 countries • CIF sales require third party insurer • Maximum value any one shipment $15mm • 5 year average loss approximately $2.2mm • Average includes 2010 loss of $3mm in single shipment • Loss ratio exceeding 100% for last 5 years • Expected renewal premium $2.5mm

20. Additional Discussion